October 1st 2024.
In the coming months, Dobbies, a well-loved garden centre chain, will be closing 17 of its branches. This decision follows in the footsteps of Homebase, which recently announced its own round of store closures. As the largest garden centre operator in the UK, with 77 stores and almost 1,000 employees, Dobbies has been facing financial struggles and is now taking steps to return to sustainable profitability.
Last year, Dobbies was hit hard by unseasonable weather, rising inflation, and the overall cost of living crisis, resulting in losses of £130 million. Unfortunately, this has led to the closure of 17 of their stores, including all six Little Dobbies branches that focus on houseplants. With these closures, the total number of Dobbies stores in the UK will be reduced to 60. If you're a regular customer of Dobbies, you may be wondering if one of these closing stores is near you.
There is a small possibility that these branches may be saved, as Dobbies is working with FTI Consulting to come up with a restructuring plan. However, given that none of the 11 mainline stores and six Little Dobbies stores were profitable, it may not be wise to get your hopes up. Unfortunately, this will also affect 465 staff members. In the meantime, all of the stores marked for closure will continue to operate as normal.
The full list of Dobbies stores closing in 2024 includes Altrincham, Antrim, Gloucester, Gosforth, Harlestone Heath, Huntingdon, Inverness, King's Lynn, Pennine, Reading, and Stratford-upon-Avon. Additionally, all six Little Dobbies stores will be closing: Cheltenham, Chiswick, Clifton, Richmond, Stockbridge, and Westbourne Grove. One of the main issues for Dobbies has been high rent costs, and their plan aims to address this and ultimately return to profitability.
However, this plan is still subject to approval by creditors. In addition to store closures, Dobbies will also be seeking rent reductions at nine other sites to prevent further closures. Unfortunately, these changes will impact over 460 Dobbies employees. The company is also looking at other ways to save money and secure their long-term future, which may include accessing future investments. If these plans are not approved, Dobbies may have to consider insolvency as an option.
Sadly, this news comes just weeks after Homebase announced its own round of store closures, with 10 locations being sold to Sainsbury's. Six of these stores will close before Christmas, while the remaining four are expected to shut down soon after. Unfortunately, Dobbies and Homebase are not the only ones facing struggles in the gardening industry. According to British Garden Centres development and project manager Amy Stubbs, the entire sector has taken a hit.
Stubbs explained to Retail Gazette that the unpredictable weather has been a major factor in the decline of the gardening industry. "It almost feels like any time it’s had a chance to start, the weather has then ruined it and it’s gone backwards again. It’s just been very stop-start," she said. Despite these challenges, Dobbies and other garden centres are determined to weather the storm and continue providing their customers with quality products and services.
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